Volvo is reportedly set to cease offering funding to Polestar and can switch duty of the EV model to Geely. In accordance with Automotive Information Europe, Zhejiang Geely Holding, the mother or father of each Swedish manufacturers, will tackle the funding for Polestar.
The proposed deal will even see Geely taking on Volvo’s 48% stake in Polestar, relieving the stress on the Swedish automaker. Volvo’s heavy involvement in Polestar has been criticized by trade analysts, who view the EV model as a drag on its sources, with some having known as for Polestar to be introduced again into the Volvo-Geely ecosystem.
The swap, ought to it occur, will definitely ease issues for Volvo, which has been preventing its personal battles and final 12 months began to chop 1,300 jobs, a part of a drive to scale back prices throughout international operations.
Whereas welcoming Volvo’s determination to focus its sources by itself growth, Geely says it can totally assist Polestar to stay as an unbiased model. In accordance with analysts, Polestar would wish to a further US$1 billion (RM4,71 billion) over the following 12 months to maintain it afloat.
Polestar has been going by way of a tough patch in current occasions. The model, which Volvo and Geely made right into a stand-alone entity in 2017, isn’t simply going through elevated competitors however can be struggling to match the worth reductions made by Tesla and BYD.
It failed to fulfill its 2023 gross sales goal of 60,000 items, delivering 54,600 automobiles globally final 12 months. The 60,000 unit goal was itself a cutting down of the 80,000 unit goal it had initially set firstly of 2023. Its current announcement of plans to lower round 450 jobs, or 15% of its workforce, globally could have sped up the bailout course of.
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